Fragrance Ingredients Market

Market Definition

The market encompasses the production and supply of raw materials used in the creation of perfumes, cosmetics, household products, and food and beverages. The market includes natural, synthetic, and biotechnological ingredients such as essential oils, aroma chemicals, and extracts.

Market growth is driven by consumer demand for innovation, sustainability, and personalized scent experiences across various industries. The report provides a comprehensive analysis of key drivers, emerging trends, and the competitive landscape expected to influence the market over the forecast period.

Fragrance Ingredients Market Overview

The global fragrance ingredients market size was valued at USD 13.21 billion in 2023 and is projected to grow from USD 13.74 billion in 2024 to USD 19.07 billion by 2031, exhibiting a CAGR of 4.79% during the forecast period.

The rising demand for personal care products, coupled with the growth of the cosmetics and skincare industry, is fueling market expansion and innovation in product offerings.

Major companies operating in the fragrance ingredients industry are BASF, MANE (EN), dsm-firmenich., Givaudan, International Flavors & Fragrances Inc., Sensient Technologies Corporation, Takasago International Corporation, Kao Company, T. HASEGAWA CO., LTD., Kalpsutra Chemicals Pvt. Ltd., Treatt Plc, Fine Fragrances., BMV Fragrances Private Limited, Veera Fragrances, Symrise, and others.

Market growth is fueled by rising consumer spending on perfumes, cosmetics, and grooming products, which is boosting demand for fragrance ingredients. As self-care and premium products gain importance, the need for innovative, high-quality fragrance ingredients across a wide range of price points and categories continues to grow.

• For instance, in November 2024, Coty Inc. reported strong first-quarter growth for fiscal year 2025, fueled by robust fragrance sales across prestige, ultra-premium, and mass-market segments—highlighting the rising consumer demand in the personal care sector.

Key Highlights:

1. The fragrance ingredients industry size was recorded at USD 13.21 billion in 2023.
2. The market is projected to grow at a CAGR of 4.79% from 2024 to 2031.
3. Europe held a market share of 32.00% in 2023, with a valuation of USD 4.23 billion.
4. The synthetic ingredients segment garnered USD 8.01 billion in revenue in 2023.
5. The personal care segment is expected to reach USD 9.82 billion by 2031.
6. Asia Pacific is anticipated to grow at a CAGR of 5.51% over the forecast period.

Market Driver

"Expansion of the Cosmetics and Skincare Sector"

The growth of the global fragrance ingredients market is fueled by the expansion of the cosmetics and skincare industry, as consumers demand premium and innovative products.

Growing awareness of personal care and wellness, combined with a preference for high-quality, natural ingredients, is highlighting the need for advanced fragrance solutions. This shift is prompting companies to innovate and broaden their product offerings, further fueling market growth.

• In May 2024, CAS , a division of the American Chemical Society, emphasized the growing shift toward sustainability in the cosmetics industry. The demand for natural ingredients is projected to grow from USD 642 million in 2022 to USD 1,095 million by 2030. This shift reflects a notable change in consumer behavior, with over 40% of shoppers prioritizing natural ingredients in their beauty and personal care products.

Market Challenge

"Demand for Natural Ingredients"

 A key challenge in the fragrance ingredients market is the growing demand for sustainable and natural ingredients, which puts pressure on supply chains and increases production costs.

To address this, companies can invest in sustainable farming practices or biotechnological innovations. Enhancing supply chain transparency also helps ensure consistent quality while aligning with consumer expectations for eco-friendly products.

Market Trend

"Rise of Synthetic Ingredients"

The expansion of the global fragrance ingredients market is propelled by the surging demand for synthetic ingredients due to their cost-effectiveness, consistent quality, and enhanced performance. They also greater formulation flexibility while reducing reliance on scarce natural resources, addressing key sustainability concerns.

• In April 2024, Eurofragance introduced Euphorion, a new synthetic ingredient designed to  enhance olfactory freshness . Known for its natural, long-lasting scent and strong sillage, Euphorion delivers a distinctive green note adds depth and character to fragrance formulations, even at low concentrations.

Fragrance Ingredients Market Report Snapshot

Segmentation	Details
By Type	Natural Ingredients, Synthetic Ingredients
By Application	Hair care, Personal Care, Fabric care, Others
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation

• By Type (Natural Ingredients and Synthetic Ingredients): The synthetic ingredients segment earned USD 8.01 billion in 2023 due to their cost-effectiveness, consistent quality, enhanced performance, and ability to meet sustainability goals, offering greater formulation flexibility and compliance with global safety standards, making them the preferred choice for manufacturers in personal care, home care, and fine fragrance applications.
• By Application (Hair care, Personal Care, Fabric care, and Others): The personal care segment held a share of 50.40% in 2023, fueled by rising consumer demand for scented skincare, haircare, and hygiene products, driven by growing awareness of personal grooming, wellness trends, and the increasing preference for premium and customized formulations.

Fragrance Ingredients Market Regional Analysis

Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

The Europe fragrance ingredients market share stood at around 32.00% in 2023, valued at USD 4.23 billion. This dominance is attributed to Europe’s leadership in the natural and green chemistry movement.

The region’s strong emphasis on sustainability fosters the adoption of bio-based, eco-friendly fragrance ingredients, aligning with the rising consumer demand for environmentally conscious products.

• In March 2024, BASF, a European company, expanded its  natural flavor portfolio with the launch of Isobionics Natural beta-Caryophyllene 80, strengthening its position in the flavor industry. This initiative demonstrates BASF's commitment to developing natural flavors based on customer needs. 

Asia Pacific fragrance ingredients industry is estimated to grow at a CAGR of 5.51% over the forecast period. This growth is fostered by a rapidly expanding consumer base, rising disposable incomes, and increased demand for personal care and cosmetic products.

The region’s growing middle-class population, combined with a strong preference for premium and innovative products, is fueling the adoption of advanced fragrance ingredients.

Regulatory Frameworks

• In Europe, the European Union’s Cosmetics Regulation (EC) No 1223/2009 governs the safety of fragrance ingredients in personal care products.
• In Asia Pacific, the ASEAN Cosmetic Directive (ACD) regulates fragrance ingredient safety in cosmetics across member countries.

Competitive Landscape

The fragrance ingredients industry is highly competitive, with key players launching innovative products to maintain their market position. Recent launches focus on enhancing fragrance performance, sustainability, and consumer preferences. These developments aim to differentiate offerings and meet evolving demands, enabling companies to expand their market share.

• In January 2024, Givaudan expanded its fragrance precursor collection with the introduction of Scentaurus Vanilla. This non-colouring, oxygen-activated vanilla note that offers a refreshing burst and a long-lasting powdery, creamy effect. Thia launch marks a high-performance addition to the collection.

List of Key Companies in Fragrance Ingredients Market:

• BASF 
• MANE (EN) 
• dsm-firmenich.
• Givaudan
• International Flavors & Fragrances Inc. 
• Sensient Technologies Corporation
• Takasago International Corporation
• Kao Company
• HASEGAWA CO., LTD.
• Kalpsutra Chemicals Pvt. Ltd.
• Treatt Plc
• Fine Fragrances.
• BMV Fragrances Private Limited 
• Veera Fragrances
• Symrise

Recent Developments (M&A/New Product Launch)

• In July 2024, dsm-firmenich launched the AROMActive line at InCosmetics Global 2024 in response to the increasing demand for holistic self-care solutions that emphasize personal wellbeing and environmental sustainability. This innovative range combines skin science with the therapeutic benefits of aromatherapy to offer a distinctive self-care experience.
• In May 2023, Firmenich International SA completed its merger with DSM, forming DSM-Firmenich AG. This announcement follows the fulfillment of all customary conditions, the  share exchange offer, and the contribution of Firmenich shares to the new entity.